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Think about a scenario in your own life where you could set up a CVP analysis...

Think about a scenario in your own life where you could set up a CVP analysis to determine different outcomes.

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Answer #1

1. We can use CVP analysis to determine the BEP point of hours of work in our day to day activities-

Daily fixed cost/ Revenue per hour= Minimum hours to work for maintainig statndard of living

2. Cost variance analysis-

Determine budget and compare with actual expenes and calculate variances-

3. Sales- VC= contribution to be kept for recovering fixed cost.

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